The Role of R&D Technology in Asymmetic Research Joint Ventures
12 Pages Posted: 3 Apr 2006
We characterize asymmetric equilibria in two-stage process innovation games and show that they are prevalent in the different models of R&D technology considered in the literature. Indeed, cooperation in R&D may be accompanied by high concentration in the product market. We show that while such an increase may be profitable, it may be socially inefficient.
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